Our corporate subscriptions are designed for companies who want to purchase access for 10-100, or 100+ users, giving their business complete access to the data, insight and news CN provides - plus benefit from a significant cost-saving

Carillion: £335m Royal Liverpool Hospital ‘faces default’

The NHS trust behind Carillion’s £335m Royal Liverpool Hospital will have the option to declare the project in default from 30 September, according to the minister for health and social care.

The date, described by Stephen Barclay MP as a “key milestone”, is the date of completion as listed in Carillion’s contract to build the scheme.

As the hospital will now not be delivered by this date, the Royal Liverpool and Broadgreen University Hospitals NHS Trust has the ability to terminate the entire private finance initiative deal.

The minister, who suggested there was “some other option” as well as the deal’s termination, said the government had told the trust it would support whatever steps it needed to take to ensure the project avoided further delay.

Mr Barclay also revealed that “significant concerns” had been identified with Carillion’s work on the project, the investigation of which had also led to delays.

Carillion collapsed a few months after last year’s CN100 was published. In this year’s data, CN turned to new measures to gauge short-term stability and long-term liabilities and set about applying the critera to Carillion’s last set of accounts to find out if it was possible to predict the contractor’s demise.

This year’s CN100 shows an industry that is split between those who are specialists in their field and making a proper margin, and those who are struggling with fragile balance sheets and highly leveraged business models.

Have your say

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.